“The rapid growth of ETFs in the US, where retail investors represent nearly 50% of the investor base, has been attributed to providers educating investors on the product benefits of ETFs. In order for Europe to increase retail adoption of ETFs, the industry needs to allocate significant time consulting with financial intermediaries and investors,” writes Shawn McNinch of Brown Brothers Harriman in the eFinancial piece.
Interestingly, there are more ETPs listed across Europe than there are in the U.S. As of the end of June, Europe was home to nearly 1,440 ETFs and almost 2,060 exchange traded products from 50 providers, according to ETFGI data. The total number of Europe-listed ETPs has more than quadrupled since 2007.
“In June investors invested almost all net new money into equity exposures with the US and emerging markets being the preferred allocations. The S&P 500 index ended up 7% at the end of Q2 2014, closing at an all-time high (1963) on June 20th. Internationally, developed markets gained 2% and emerging markets are up 4%. The positive equity market performance has helped to improve investor confidence during the first half of 2014.” according to Deborah Fuhr, Managing Partner at ETFGI.
The compound annual growth rate of Europe’s ETP market over the past decade has been 35.2%, according to ETFGI. [BlackRock Implements Global Structure in Europe ETF Market]
ETF Trends editorial team contributed to this post.